LIUGONG(SZ:000528) Huaan Securities·2024-10-24 01:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a continuous improvement in profitability, driven by electrification and international expansion, which supports high growth [4] - For the first three quarters of 2024, the company achieved operating revenue of 22.856 billion yuan, a year-on-year increase of 8.25%, and a total profit of 1.573 billion yuan, up 43.77% year-on-year [3] - The net profit attributable to the parent company reached 1.321 billion yuan, reflecting a year-on-year growth of 59.82% [3] - The third quarter of 2024 saw an operating revenue of 6.796 billion yuan, a year-on-year increase of 11.81%, with a net profit of 337 million yuan, up 58.74% year-on-year [3] Financial Performance Summary - The company’s revenue and profit both showed growth, with the revenue growth attributed to recovering market demand and enhanced product competitiveness [4] - The gross margin and net margin for Q3 2024 were 23.67% and 5.02%, respectively, both showing year-on-year increases [4] - The company’s earnings forecasts for 2024-2026 have been adjusted, with net profit estimates raised to 1.613 billion yuan, 2.165 billion yuan, and 2.772 billion yuan for the respective years [5] - The diluted EPS is projected to be 0.81 yuan, 1.09 yuan, and 1.40 yuan for 2024, 2025, and 2026, respectively [5] - The current stock price corresponds to P/E multiples of 15, 11, and 9 for the next three years [5] Market Outlook - The company is expected to benefit from the implementation of loose monetary and fiscal policies, which may stabilize the domestic market and improve industry demand [4] - The company is committed to high-quality development and has taken measures to protect investor interests, which reflects confidence in future growth [5]